63 SECTION 4 SUSTAINABILITY JOURNEY INTEGRATED ANNUAL REPORT 2025 We also continued to advance our Wasco Forest project, strengthening our commitment to nature-based climate solutions and ecological restoration. Biodiversity studies conducted during the project’s first phase at Hutan Simpan Berkelah in Maran, Pahang confirmed the presence of native flora and fauna, providing early affirmation that our degraded land restoration efforts are beginning to yield ecological results. Ongoing monitoring of tree health and soil carbon stocks is further deepening our understanding of the forest’s long-term carbon sequestration potential while guiding improvements to our restoration approach. Building on these encouraging outcomes, we launched Wasco Forest Phase 2, which focuses on enrichment planting to strengthen biodiversity and improve the resilience of the restored ecosystem. While enrichment planting within degraded forest landscapes is significantly more complex than conventional tree planting, it represents a far more meaningful approach to ecological restoration, as it contributes to the recovery of native biodiversity and strengthens ecosystem resilience over time, resulting in more stable and enduring carbon sequestration. This supports our long-term ambition of planting one million trees while maximising carbon sequestration and biodiversity outcomes. At the same time, we continued to grow our portfolio of sustainable infrastructure and green energy solutions. While the continued progress of our Bioenergy division reflects our commitment to practical decarbonisation solutions through biomass energy systems, our broader Energy business is also increasingly supporting projects aligned with the energy transition, including infrastructure that enables lower-carbon and emerging energy systems. Together, these efforts reinforce Wasco’s strategy of contributing to the global energy transition while delivering sustainable solutions to the markets we serve. STRENGTHENING GOVERNANCE AND ACCOUNTABILITY Sustainability governance at Wasco is overseen by our Board Sustainability Committee, supported by our Sustainability Steering Committee and Group Sustainability functions. In 2025, we reinforced our governance structures to ensure sustainability risks and opportunities are systematically integrated into our Group’s oversight. In 2025, we strengthened our reporting frameworks to align with IFRS S1 and S2 through improved internal controls, data traceability, and assurance processes. Climate-related considerations are now embedded within our Group risk assessment process, enhancing the visibility of both transition and physical risks that may affect our operations and supply chain. We expect this integration into our strategic and investment decisions to continue maturing as data quality and our capabilities improve over time. EXTENDING RESPONSIBILITY ACROSS OUR VALUE CHAIN Recognising that our impact extends beyond our direct operations, we launched pilot engagements under the Sustainable Transformation and Ethical Partnership (“STEP”) initiative, with specific focus on climate change and human rights due diligence. These early engagements with our suppliers and contractors have yielded positive feedback and increased awareness while laying the groundwork for broader programme rollout in the coming year. In line with our commitment to responsible sourcing, we have started integrating sustainability metrics into our vendor registration processes, strengthening our progress on mitigating Scope 3 emissions and human rights concerns. Our immediate priority remains to understand our suppliers’ maturity levels and building capacity for the long-term improvement of our supply chain’s sustainability performance. SUSTAINABILITY JOURNEY ARIESZA NOOR Chief Strategy Officer Wasco Berhad FTSE Russell ESG Score 4.4 up from 4.1 The Edge ESG Awards 2025 Gold from Silver
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